The Belgian construction industry recorded a review-period (2009?2013) compound annual growth rate (CAGR) of 3.97%. As a result of the eurozone crisis, the industry declined by 0.3% in 2009, and by 0.1% in 2013. This, along with falling employment and low wage growth, led to steady falls in domestic economic activity and demand for new construction projects. Construction industry growth is expected to recover over the forecast period (2013-2018), driven by government initiatives to improve public infrastructure, moderate household debt, and rising interest of domestic and foreign developers in constructing residential units to meet housing demand. Consequently, the industry is expected to grow at a moderate forecast-period CAGR of 2.0%.

- The Belgian construction industry is undergoing a testing period as a result of subdued economic activity. The industry recorded negative growth of 0.1% (nominal terms) in 2013, the first time since 2009. The construction production index fell by 0.3% during the first quarter of 2013, although there was marginal growth in the second and third quarters, with the production index growing by 0.1% and 0.6% respectively. The industry is set to grow further, both in 2014 and over the forecast period, due to improved economic conditions, low interest rates and increased investment.

- In nominal terms, the total construction value add in Belgium was EUR19.4 billion (US$25.8 billion) in 2013, after registering a nominal CAGR of 2.35% during the review period. The value add is anticipated to reach EUR21.9 billion (US$30.9 billion) in 2018, and record a nominal forecast-period CAGR of 1.50% over, driven by increases in residential and infrastructure construction activity and government measures to enhance the country’s real estate and transport networks.

- The European Investment Bank (EIB), the EU’s non-profit long-term lending institution, has announced plans to invest in projects to create both job opportunities and financing solutions, as well as to increase partnerships among public and private firms. In 2013, the EIB allocated EUR1.5 billion (US$2.6 billion), of which 19.0% was for the energy sector, 8.0% for the transport sector, 24.0% for water and sewage, 11.0% for the industrial and agricultural sectors, 15.0% for the education and healthcare sectors, and 23.0% for other small- and medium-scale projects. This is thus likely to support construction activity growth in these areas.

- A growing number of small- and medium-sized Belgian businesses are filing for bankruptcy as a result of rising staff costs and excessive taxation. According to Statistics Belgium, the number of bankrupt businesses in the country in the second half of 2013 rose to 6,006, a 4.5% rise compared to the second half of 2012. On account of the huge costs involved, only large-scale businesses were able to survive, while small companies and independent traders were affected the most in this difficult situation. During the same period, the number of failed businesses rose by 10.3% in the construction industry, by 2.3% in the commerce industry, by 9.5% in the hotel and catering industry, by 5.0% in the transportation industry, and by 3.7% in the industrial sector. This situation was worst in the Brussels region, where the number of bankruptcies rose by 33.0% in 2013.

- According to the Global Property Guide Belgium, residential property prices in the country rose by 0.3% in 2013, after increases of 1.1% in 2012 and 3.5% in 2011. There have been varying trends in property prices in different categories, however with the largest increase in prices recorded in the multi-family housing category, as apartment prices in the country increased by 0.9%. At the same time, the single-family housing category posted a decline in prices, as prices of bungalows and villas decreased by 0.9%. Furthermore, there has been variation in the property prices in regions, if adjusted for inflation; house prices rose in the Flemish region by 3.4% and in the Walloon region by 1.9%, although in Brussels, prices dropped by 1.2%.

Construction in Chile – Key Trends and Opportunities to 2018
The Chilean construction industry recorded a compound annual growth rate (CAGR) of 7.79% during the review period (2009?2013). During the review period, and following the 2010 earthquake, growth was supported by a rapid inflow of foreign direct investment (FDI), low unemployment, reconstruction and modernization work. The growth of the construction industry is expected to remain strong over the forecast period (2014?2018), as the government is increasing its efforts to improve the country’s infrastructure, meet the rising demand for residential units and increase investment in the mining and retail industries. The construction industry’s output is expected to record a CAGR of 8.90% over the forecast period.

- The construction industry is likely to expand over the forecast period, as a result of healthy inflows of FDI. According to the Foreign Investment Committee, the country attracted a total of CLP11.1 trillion (US$28.2 billion) in FDI in 2012; an increase of 63.0% over 2011. The Pacific Alliance, a Latin American trade bloc comprising Chile, Colombia, Mexico and Peru, received CLP1.0 quadrillion (US$2.1 trillion) as total planned investment for the period 2013-2016. Of this total investment, Chile is likely to receive CLP50.2 trillion (US$102.0 billion) FDI over 2013-2016. Continuous investments in the mining industry and infrastructure will also aid growth of the construction industry over the forecast period.

- During the review period, the Chilean construction industry registered a value add CAGR of 11.07% in nominal terms, reaching a value of CLP10.9 trillion (US$22.9 billion) in 2013. Over the forecast period, the construction value added is expected to register a CAGR of 8.49%, to value CLP16.5 trillion (US$34.4 billion) in 2018. Forecast-period growth will depend upon healthy economic growth, increased investments and favorable business conditions.

- Due to the increasing number of people living in residential areas ? longer distances from prime locations ? retailers are focusing on establishing the mini-malls segment. Due to the healthier economic environment, improving consumer confidence has helped to increase the number of investments in the retail sector. According to a Chilean business newspaper, Pulso is planning to invest CLP3.5 trillion (US$7.1 billion) by 2017. Falabella, a Chilean department store retailer, will make the largest investment of CLP2.0 trillion (US$4.0 billion), which will add 527 stores and 51 malls to its retail portfolio. Other retailers such as Cencosud and Parque Arauco will invest CLP590.3 billion (US$1.2 billion) and CLP221.4 billion (US$450.0 million) respectively. Such developments in the retail sector will support the retail buildings category over the forecast period.

- The residential construction market will be fueled further by projects such as: the Vitacura Cumbres del Condor Residential Complex, valued at CLP17.9 billion (US$37.0 million); the Rancagua Portal Machali Housing Complex, worth CLP18.9 billion (US$39.0 million); and the Papudo Residential Units Development project, worth CLP48.6 billion (US$100.0 million). All of these are expected to be completed over the forecast period.

- In 2012, the government passed a new research and development (R&D) law to stimulate R&D investments and establish Chile as a primary innovation hub in Latin America. Under the law, the corporate taxpayer can claim a tax credit of 35.0% on all R&D projects, with the remaining 65% being tax-deductible in any sector. The law also tripled the maximum amount of tax credit that companies can claim to CLP583.8 billion (US$1.2 million) per year. Over the forecast period, growth in the research facilities category will be supported by the government’s efforts to promote R&D activities.